by Tim Daiss
The Saudis have to make a decision by next month whether or not to keep the second, and current OPEC+ production agreement to remove 1.2 million bpd of oil from markets in place or not.
U.S. sanctions against Iran and Venezuela, oil output problems in Libya and Canada, all come into play as does perhaps the biggest dynamic of all in global oil markets - the impact that the ongoing trade war between the U.S. and China will have.
The fiscal break-even point for Saudi Arabia is $75+ per barrel. The IMF said recently that the Kingdom needs oil at around at least $80-$85 per barrel to balance its books.
U.S. shale producers, for their part, would also cut production in an oil market with prices south of $50.
Most shale producers in the Permian basin now have a break-even cost between $46-$50, while some Permian producers can make money even if oil dropped as low as $32 per barrel.
Source: Oilprice.com
https://finance.yahoo.com/news/overlook ... 00580.html